tv On the Money ABC June 11, 2017 7:30am-8:00am EDT
hi, everyone. welcome to "on the money." i'm becky quick. the summer travel season is here but there are new tsa rules that could make getting from here to there even harder. downsizing or dealing with an estate. the company that does everything for you and gets cash for everything but the house. new rules to protect you if you're saving for retirement. how it works and what it means and how it could save you money. and if getting out of your hotel bed and making your way all the way to the gym is too much for you, check this out. a different kind of room service. "on the money" starts right now. this is "on the money," your money, your life, your future. now, becky quick. >> we begin with the summer travel season. it's heating up and there are big changes in airport security. the tsa
procedures. they will look at your carry-on and there are checkpoint changes. >> reporter: if you're one of those people cramming as much as you can into your carry-on bags, gets ready to unpack. the tsa is testing a new strategy having travelers put all electronics larger than a cell phone in a separate bin, which includes ipads and tablets and e-readers. the idea is to make it easier to catch potential problems in bulging carry-ones. >> you have to weed through multiple things in there. the more organics in there, the slower the process is going to become. >> initially, the new procedures will be tested at ten airports, including l.a.x. and boston logan. that change comes as the department of homeland security also considers expanding a ban on passengers carrying laptop computers onto international flights due to
use laptops to trigger a bomb mid-flight. >> there's numerous threats against aviation. that's really the thing that they are obsessed with, the terrorists. the idea of knocking down an airplane in flight, particularly if it's a u.s. carrier, particularly if it's full of mostly u.s. folks. >> reporter: there's already a laptop ban for flights from some airports in the middle east. since it went into effect, emirates airways, the largest airline in the middle east, has cut some trips to the u.s. due to less travelers. for now, many believe tighter security or an expanded laptop ban will not prompt people to skip overseas trips. >> reporter: so far, travelers are adjusting to the new reality which could include longer lines
>> i don't think it will make lines longer necessarily. once people get accustomed to that being part of the process, just as your shoes having to be removed and that kind of thing, i people will get accustomed to it and it will change. >> they're horrible. they're like an hour long sometimes, from here, down the stairs and to the side and people going from level to level. >> it's a chore to go through it. it's probably the worst part of the experience and a lot of us have tried to do pre-check so we don't have to do that. >> reporter: while travelers may not care for the hassle that goes along with security in the airport or on a plane, most are willing to put up with it in order to get away. in fact, this summer, a record number of people are expected to fly due to a stronger economy and airfares that are about 8% lower than this time last year. phil lebeau, "on the money," chicago. >> so what will these new rules mean for your trip and are more changes ahead? mike boyd is a
consultant. mike, it's great to see you today. thank you for being here. >> my honor. thank you. >> just when we thought it couldn't be more of a hassle, are these necessary rules and should they be taking place? >> well, i have no problem with it, separating things so they can see it better. that's going to speed things up, not slow things down. but where i'm really concerned is why would you announce the airports where you're increasing security? why not send a memo to al qaeda while you're at it. i think these are the sorts of things that do show that we are more concerned about things and i think clearly they are looking at airports that don't look at things as closely as we do. >> you mean, instead of the ten airports where these are taking place, random and rolling checks that take place from time to time so be prepared? >> yeah. just say we're going to have higher security in some places. you may have to separate some of your things and keep the electronics separate. that's a very simple thing to do but to say we're doing it in los angeles, for the terrorists, that's a good pla
>> right. >> but overall, this is a positive move, to be very blunt with you. >> in terms of laptops being banned, i know they will be banned on international flights mostly from the middle east but homeland security has been considering expanding that to 71 airports. do you think that that will happen this summer? could laptops be banned on all flights eventually? >> i would hope not. that will change the makeup of the air transportation as travel. i need my laptop to go with me. it's part of my communication network. if i can't take it -- i used to handle luggage. i don't want other people handling it. we need to have that so we need to make sure we keep the communication channels open. >> we spoke with a ceo of an airline recently who pointed out it's not a great idea to have all of these laptops in the hold underneath either. if people are just checking their bags. you don't want them stored in a single place because the risk of the batteri
place could be an issue, too. this may be a rolling issue to try and deal with. >> it could be. the lithium batteries as far as having a communication tool with you that you need, when you get somewhere, if we take that away, you're going to see domestic air travel drop. there's no question about it. it would happen. i don't think we're going to get to that. but if they do, that's what we'll see. >> travelers can spend $8500, $100 for tsa precheck and kbloeb balanc global entry. are the fast lines still the fast lines? >> well, i think -- yes and yes. i mean, the precheck is what we used to have before 9/11 and it has sped -- i think it has made things move faster at big airports, even if you have a big line, it moves quickly. to be honest, the people in the blue shirts at hai
get you through there. >> airport travel is up 4% but prices are down 8%. you add up lower prices, more demand, does that mean it's going to be a difficult travel season for anybody trying to do this as a consumer? >> it shouldn't be. the capacity will be up 4% and that will be filled. it's not a huge amount. the difference in the summertime and the mix of travelers is different at some airports. you know, more kids, more strollers, more people that don't know you can't bring a swiss army knife with you. there's a little of that. >> i got caught trying to bring a chocolate swiss knife back in. i swear it's just chocolate. thank you for joining me. >> my honor. thank you. up next on "on the money," the one-stop shopping for selling your stuff. and later, does your retirement adviser put your interests first? what a new federal rule means for you. right now, though, take a look at how the stock market ended the week.
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♪ now here's a look at what's making news as we head into a new week on"on the money." there were more open jobs in april than the last 16 years. the labor department survey which measures those openings rose by 4%, which suggests that businesses are having trouble finding qualified people as the unemployment rate declines. there were more than 6 million open jobs. that's the most since december of 2000. the dow touched a record high on friday morning as did the s&p 500. nasdaq closed at a new high on thursday and climbed again in early trading on friday. stocks were mixed at the end of the day. nordstrom may have found a way to alleviate the pressure that many retailers are feeling these days by gng
the department store chains are looking into buying the companies that they don't already own. if the company is private, there would be less of a need to try and show profits on a weekly or quarterly basis. apple has a new product to compete with echo and google home. it's called the home pod and it's apple's first new product since the apple watch. >> just like we did with propertiab portab music, we want to reinvent home music. >> it will retail for $349 and it's a combination of speaker and microphone which responds to home requests. home pod will launch later this year. they say sales can be an adventure for a buyer and for an owner, it can be awkward and emotional. people are looking through your home and looking to pay next to nothing for your possessions. an online company called everything but the house may have the solution. joining us right now is andy neilson, the company's ceo. how does everything but the
housework? >> it's an online estate marketplace. we have two distinct customers. on the sell side, we're a full service estate company. we'll help a seller going through a loss of a loved one, downsize, a corporate relocation. >> when you say full service, what does that mean? >> you call us when you're going to downsize or have lost a loved one. we'll coordinate junk removal, items to be donated and anything left to be saleable we list on our website. >> i can't deal with this right now, you come check this out. >> you call us. entirely stress-free. everything is bottom and sold in auction-style format. it's a much global audience. >> in terms of who is coming in and -- how many customers are trying to buy off of all of this? >> we have more than a million users and bidders in 150 countrie
traditional estate sale business which today has been relatively local. >> you guys charge 40% of the take. >> we do. we charge sellers 40%. there's no upfront fee. at the end of the process, if we sell $100,000 worth of contents, as a seller, you receive 60 and we receive 40. >> my question with all of it, what if i have something that i feel is valuable and don't want to let go for less than $10,000. can i put that on? >> absolutely. we've sold pianos, artworks, collectibles, automobiles, everything from $5 up to 100,000. it's up to us to make sure we drive highest demand and ultimately we're able to produce traditionally three to five times the amount of economic results. >> what if something doesn't sell after a week. >> almost everything sell gls what if it doesn't? >> we make a donation on your behalf or return it to the seller. but because
auction format and we've transitioned from a local backyard garage sale to a retail customer experience, we're able to sell more than 99% of the items we list. >> it makes me wonder who you are competing with. the likes of an ebay? >> so ebay is pure -- it's usually content. i'm a seller and you're a buyer and i list my content. we put our brand between buyer and seller so we create trust and authenticity and really it's on the service element, you compete with a service provider and e-commerce, ultimately by solving the shipping logistics to buying secondhand inventory, we can sell you used goods from somebody's home with a click of a button creating higher values for our sellers. >> you started about nine years ago. what's the plan?
cincinnati. we're in 27 areas. buyers can be located anywhere. we cover anything from east coast to west coast and we have a global opportunity here. it's about expansion, execution, brand awareness, educating people that the service exists and we provide it for you. >> andy, thank you for your time. >> thank you so much. happy to be here. >> thank you. up next, we're "on the money." is your financial partner's goal to make money for you or yourself? a new rule is holding retirement advisers to a higher standard. and later, on the road to fitness. hotel perks with if you have a garden, you know weeds are low-down little scoundrels. with roundup precision gel®, you can finally banish garden weeds without harming precious plants nearby. so draw the line. just give the stick one click, touch the leaves and the gel stays put killing garden weeds to the root with pinpoint precision.
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all with a 2-year agreement. switch now at fiosgigabit.com. a financial planner sultgges where and how to invest your savings. a new rule is about to change. joining us to explain it is a columnist for "o," the oprah magazine. thank you for being here. >> thanks for having me. >> what is the few dish rather rules in simple terms. >> sure. it's a new requirement in the industry that requires anyone who has given you investment advice pertaining to your retirement has to act on your best interests alone. >> it's kind of ridiculous that you have to have a rule to tell people to treat you right a
>> right. they were required to be fiduciaries. a lot of people in the marketplace are giving you investment advice regarding your iras and 401(k)s and they just had to recommend suitable investments. meanwhile, they are making commissions and charging fees. >> based on the stuff that they are pushing your way. >> right. >> so we know that some financial firms have been opposed to this. how do you come out saying that you're opposed to this without eating broken glass? >> right. so the critics are saying that this is going to be very costly to transition and phase into this. it's estimated that it's going to cost billions of dollars and impact mostly the smaller, independent dealers and investment advisers who can't really afford this transition. london and the uk did this in 2011. they had similar rules enacted and since then, about 20% of financial advisers have dropped out of the marketplace. >> because they can't make money if they're not
products they push your way? >> precisely. yeah. they want it to be a win-win. they want the investor to win but they also need to be paying their bills. >> the one thing i've heard is that this is going to be paying for people at the lower end of the spectrum, if they need to get financial advice, they are not going to get it anymore because they won't be able to afford it. >> there are robo advisers out there that typically invest in no fee index fees f you're being looking to save for retirement, you may not get the one-on-one advice and counsel, but these days, even professional investors are saying we can't beat the market. it's better to put your money in index funds in the long run. >> if i'm somebody looking for the best options for retirement, are there questions i should ask or red flags i should be aware of? >> still ask, are you a fiduciary? just because we enacted this rule doesn't mean people are going to be following the new regulations. ask, how do you make your money?
people can still make commissions but they have to be reasonable about it. you want that transparency and be proactive about it. don't take a back seat thinking that this rule will be the end all solution. >> are there penalties for people who don't follow the rules? >> there will be. so for the next six months, this is going to phase in and starting in january, we may see class-action lawsuits. >> thank you so much for being here. >> you're welcome. >> we appreciate it. up next, "on the money," a look at the news for the week ahead and hotel rooms where there is just no excuse for missing a workout. if you have afib not caused by a heart valve problem, and you're taking warfarin, you have the choice of a different kind of blood thinner. pradaxa helps stop blood cells from pooling in the heart, forming a clot which can cause a stroke in the brain. in a clinical study, pradaxa was better than warfarin at reducing stroke risk. and in the rare case of an emergency situation, when seconds matter, there's the only fda-approved reversal treatment made for people taking pradaxa that helps
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for more on our show and our guests, go to otm.cnbc.com. here are the stories coming up that may impact your money this week. on turesday, the national federation of business releases its report for may for small business owners. wednesday is the second day of the federal reserve's open market committee meeting. a rate hike is expected and janet yellen will be holding a news conference. we'll be getting retail sales numbers for the month of may as well and it is also president trump's 71st birthday. it's also flag day, too. then on friday, bob dylan's like a "rolling stone" turns 52. when you're traveling, sitting
hotels want to make it easier but it comes with a price. diana olick has the story. >> reporter: getting out of bed to work out is tough. but what if the bed were right next to the gym? >> we have always wanted to do a room that was built around movement and mindfulness. >> reporter: hilton hotel is betting you'll pay more for this added incentive. 45 bucks more night for the 5 feet to fitness room. >> one of the most fascinating elements of this entire space is the sheer volume of different activities and options that are here. >> right. it's a tiny space. >> exactly. >> it's not just a bike and a yoga mat but an apparatus of amenities like bosu balance, trx and a screen with on-demand instructional videos and routines for every piece of equipment. >> the good thing is,
>> reporter: so would you pay more for this than going down to the regular gym? >> no, absolutely not. >> reporter: why not? >> i can get it right here. why would i pay more to have it five minutes away. >> reporter: for budget crunchers, maybe not. but for others -- >> i do a series of stretches before i walk out of the room. so for me, that would be very convenient. >> reporter: but guests say the fitness rooms cannot sacrifice any of the usual amenities for space and the fitness area must be cleaned and well-managed. hilton is doing special training with the cleaning staff and each of these rooms has a soundproof floor so the guests below aren't disturbed. you've got cadence and output. this comes just after westwesti westin announced a new launch with pelotan that will go into westin gyms and also private rooms. >> the global congregation of people tuned
ever enlarging. the tent is big. >> reporter: even if the space -- >> cross your legs. >> reporter: is not. now, hilton executives say if the pilot project goes well, they will expand to other hotels like embassy suites. they expect demand to be strong from international travelers to major cities like here in d.c. becky? >> it makes a lot of sense although i don't want to be sleeping in a room that smells like the gym. how will they take care of that? >> they have an actual air filter. it's an air flow that cleans the air and you can tell it smells different than other regular hotel rooms. they say they've got that covered. >> okay. >> cross your fingers on that. this cost as lot of money up front. are the franchise owners willing to foot the bill and do they get a return on investment? >> well, hilton says that they are excited about it. it takes about 10 to $12,000 to upgrade a regular ro.
what they decide to put in it but they expect that the demand is high that you'll see a return on that investment as a franchise owner in just about a year. >> wow. >> okay. diana, thank you very much. great to see you. that is the show for today. i'm becky quick. thank you so much for joining us. next week, they may be downsizing but they are upgrading, too. the big business of new homes for baby boomers. keep it right here. we are "on the money." we will see you next weekend. ♪
good morning, america. new overnight, ready to testify. attorney general jeff sessions heading to capitol hill to appear before the same senate committee that heard bombshell testimony from fired fbi director james comey. his side of the story about his contacts with the russians. clashing protests, the dueling demonstrations in several cities over islam. police using pepper spray, making arrests. >> enslavement of women, execution of gays. >> why some say it's an effort to demonize an entire faith. rescued at sea. transatlantic racers ready for a challenge but sailing into a boatload of trouble tossed about in the high seas. the "queen mary 2" coming to the rescue of this damaged